CVM Company had a total accounts receivable of 250,000 atDecember 31, 20xl. An aging analysis of the accountsreceivable and an estimate of possible credit losses are asfollows:ClassificationBalance% Credit loss1-60 days61-120 days121-180 days175,0001%2%25,00010%Over 180 days25,00050%C. What is the net realizable value of the Accountsreceivable at December 31 20x1?P232,750P233,250P237, 750P92,500

Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

CVM Company had a total accounts receivable of 250,000 at December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1% 1-60 days 61-120 days 121-180 days 175,000 2% 25,000 10% 25,000 50% Over 180 days C. What is the net realizable value of the Accounts receivable at December 31 20x1? O P232,750 O P233,250 P237, 750 O P92,500

CVM Company had a total accounts receivable of 250,000 at December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1% 1-60 days 61-120 days 121-180 days 175,000 2% 25,000 10% 25,000 50% Over 180 days C. What is the net realizable value of the Accounts receivable at December 31 20x1? O P232,750 O P233,250 P237, 750 O P92,500

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) B I U T₂ T² Ix 2022 $550,000 4,300,000 2022 7.9 times lil 2021 What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period. € $540,000 4,000,000 2021 46.2 days 48.7 days 7.5 times W 144 144 들 3 99 = á T ¶₁
Credit Losses Based on Accounts ReceivableMiller, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible:Age GroupBalanceProbability of Noncollection0 - 30 days past due$99, 0002 % 31 - 60 days past due29, 0005 % 61 - 120 days past due 20,00010 % 121-180 days past due 15,00012% Over 180 days past due 13,00024% $176,000The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,420 on December 31, before any adjustments. Prepare the adjusting entry for estimated credit losses on December 31. Prepare the journal entry to write off the Lyons Company's account on April 10 of the following year in the amount of $1,325
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Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group Balance Probability ofNoncollection 0–30 days past due $90,000 1% 31–60 days past due 20,000 2% 61–120 days past due 11,000 5% 121–180 days past due 6,000 10% Over 180 days past due 6,000 25% $133,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $820 on December 31, before any adjustments. Prepare the adjusting entry for estimated credit losses on December 31. Prepare the journal entry to write off the Rose Company’s account on April 10 of the following year in the amount of $650. a. General Journal Date Description Debit Credit Dec.31 AnswerBad Debts ExpenseAllowance for Doubtful AccountsAccounts Receivable - Rose Company Answer Answer…
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What is the accounts receivable turnover ratio for this financial accounting question?
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Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group Balance Probability ofNoncollection 0-30 days past due $95,000 1% 31-60 days past due 25,000 2% 61-120 days past due 16,000 5% 121-180 days past due 11,000 10% Over 180 days past due 9,000 25% $156,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,020 on December 31, before any adjustments. Prepare the adjusting entry for estimated credit losses on December 31. Prepare the journal entry to write off the Rose Company's account on April 10 of the following year in the amount of $925 a. General Journal Date Description Debit Credit Dec.31 Answer Answer Answer Answer Answer Answer To record allowance for credit losses. b.…
What is it's accounts receivable turnover of this financial accounting question?
Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable bal- ances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group 0-30 days past due 31-60 days past due 61-120 days past due 121-180 days past due Over 180 days past due . Balance $ 90,000 20,000 11,000 6,000 6,000 $133,000 Probability of Noncollection 1 2 5 10 25 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $820 on December 31, before any adjustments. a. Prepare the adjusting entry for estimated credit losses on December 31. b. Prepare the journal entry to write off the Rose Company's account on April 10 of the following year in the amount of $650.
How much is the account receivable turnover ratio?